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Targeting of Water Rights Retirement Programs: Evidence from Kansas

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  • Andrew B. Rosenberg

Abstract

This article assesses the water use impacts of the Conservation Reserve Enhancement Program in the Upper Arkansas River basin in Kansas, a water rights retirement program aimed at reducing depletion of the High Plains Aquifer. First, I use a fixed effects model with matched samples of farmers to determine the effect of the program on the water use of individuals who retire acreage. I find that every acre authorized for irrigation that is retired in the program represents about 1.28 acre‐feet of water that would have been used each year. Further, I do not find evidence that farmers increase their water use in an effort to satisfy program eligibility requirements. Second, I estimate a probit regression to determine which factors most influence the probability that a farmer retires a water right. Using the results of the probit regression, I then simulate enrollment decisions outside of the policy region to assess how features of the program impact its cost effectiveness and how the policy design could be improved. I find that programs that base incentives on past levels of water extraction lead to more water use reductions per dollar paid.

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  • Andrew B. Rosenberg, 2020. "Targeting of Water Rights Retirement Programs: Evidence from Kansas," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(5), pages 1425-1447, October.
    • Handle: RePEc:wly:ajagec:v:102:y:2020:i:5:p:1425-1447
    DOI: 10.1111/ajae.12102
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    2. Hrozencik, Aaron & Aillery, Marcel, 2021. "Trends in U.S. Irrigated Agriculture: Increasing Resilience Under Water Supply Scarcity," USDA Miscellaneous 316792, United States Department of Agriculture.
    3. Rouhi Rad, Mani & Suter, Jordan F. & Manning, Dale & Goemans, Christopher, 2020. "Subsidies vs. subsidies in the conservation of common property resources," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304401, Agricultural and Applied Economics Association.
    4. R. Aaron Hrozencik & Jordan F. Suter & Paul J. Ferraro & Nathan Hendricks, 2024. "Social comparisons and groundwater use: Evidence from Colorado and Kansas," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(2), pages 946-966, March.
    5. Hrozencik, Robert A. & Perez-Quesada, Gabriela, 2023. "Drought and the U.S. Livestock Sector: Assessing the Impact of the Livestock Forage Program," 2023 Annual Meeting, July 23-25, Washington D.C. 335468, Agricultural and Applied Economics Association.
    6. Hrozencik, Aaron & Aillery, Marcel, 2021. "Trends in U.S. Irrigated Agriculture: Increasing Resilience Under Water Supply Scarcity," Economic Information Bulletin 327359, United States Department of Agriculture, Economic Research Service.

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